What kind of investor are you? A short guide to four styles

What is your investor style, and how do its strengths shape it?

Through our growing involvement in helping investors pursue worthwhile, high-potential opportunities, we have come to identify four distinct investment styles. These styles represent the main way in which people approach the field of real estate investment.

Understanding our preferred investment style is essential, since each style comes with its own set of advantages and disadvantages. By identifying our investment style, we can make informed decisions that lead to safer and more profitable investments. It is important to leverage the advantages of our investment style while, at the same time, finding ways to navigate around any potential disadvantages.

There are several different styles available, including:

1. The fast decider
2. The one who works by feeling
3. The one who plays it safe
4. The one who backs everything with numbers

Below is a breakdown of each individual style:

1. The fast decider

Making a quick decision is often essential in a variety of situations. Whether in business or in personal life, the need for quick decision-making sometimes arises.

With a skill set that has led to many achievements, this person is a direct, goal-focused investor. Their focus is on performance and they are always interested in their profits. Self-confidence is a strong trait of theirs, and so are their competitiveness and charisma. They make decisions quickly and decisively.

Advantages: The fast decider is often an object of admiration for many, especially agents, because of the aforementioned traits.

Disadvantages: The tendency to focus solely on the overall concepts and to rush ahead without recognising the potential dangers and the fine but decisive details.

Recommendation: Consider collaborating with a person who has a distinct communication style, even if they are not a partner. By doing so, you can delegate the task of building a business plan and remain attentive to minor details such as income and revenue flow, as well as the management of hired professionals.

2. The one who works by feeling

A sociable and enthusiastic investor, known to be exceptional and to enjoy interaction with others. They see the investment as an exciting event in which they take part with great pleasure.

Advantages: He is a true visionary who is highly regarded by everyone and sought after as a companion. His gift of connection allows him to bond easily with all the parties involved in the business transaction. He strives for a mutually beneficial outcome and has a talent for successful negotiation.

Disadvantages: It is important to remember that, beyond the enjoyable aspects, there is a serious business dealing with significant sums of money. Those involved in this field are highly enthusiastic and tend to place great trust in others.

Recommendation: Observing the person in front of you, both in their physical expressions and in the spoken words, can help temper any emotional response. This, in turn, allows you to keep a level head and make sound business judgement.

3. The one who plays it safe

Ensuring certainty for the cautious investor – certainty is the key when it comes to investment transactions. Knowing the identity of the seller and the reasons behind their decision to sell is of paramount importance. This type of investor values long-term relationships with experienced professionals and is not afraid to delve into the details of the investment opportunity.

Advantages: Digs deep into the smallest aspects of the investment, understanding the fundamental nature of the transaction and carrying it out with comprehensive understanding.

Disadvantages: Every transaction carries a degree of uncertainty, but without taking risks we cannot hope to reap the fruits. However, getting stuck in the details of a transaction can lead to missed opportunities and, ultimately, cause a loss of profits. It is important to find a balance between attention to detail and keeping the wider picture in view in order to achieve success in the world of investments.

Recommendation: Investing in real estate requires a certain level of patience and attention to detail. It is advisable to choose a specific area to focus on and to study it extensively before searching for investment opportunities. By becoming familiar with the environment, you will be better equipped to identify a profitable transaction when it presents itself.

4. The one who backs everything with numbers

Supporting every claim with numerical evidence is the hallmark of this investor. As an uncompromising and persistent investor with a broad perspective, it is essential to continually verify the information in hand. Maintaining a firm point of view, it is essential to thoroughly examine every aspect of a transaction and to examine it from every possible angle.

Advantages: He is an expert who values detail, organisation and thoroughness. He does not only examine the big picture; he lives and breathes the small details. His business strategy is first-rate, with a wealth of information gathered mainly from the internet.

Disadvantages: The individual in question demonstrates a lack of adaptability and encounters obstacles when confronting the demands inherent in real estate investment.

Recommendation: To achieve a successful real estate investment, it is essential to abandon the comfort of Excel spreadsheets and the vast expanse of the internet and to go out into the field. A well-designed strategy, based on accurate numerical data, is a crucial component of a profitable investment. However, it is no less important to take into account the people who inhabit the environment in which the property is located.

We recommend reading the article again and identifying your own personal investor style. You should also identify the style of your partner, if applicable, since partners have different styles. Once you have identified your respective styles, it is important to assign tasks accordingly in order to ensure maximum productivity.

Based on our personal experience, we have found that there is no clear gender divide when it comes to sociability or skill with Excel. Therefore, it is important to approach this matter with an open and honest mind. Adequate preparation is the key to improving one’s skills in this area.

A short case that happened to us recently:

In a recent consultation meeting, we met a young couple from Rishon LeZion. At the beginning of our meeting, I identified both individuals as emotional investors. As we continued our discussion, it became clear that they were struggling to reach mutual decisions because of their differing approaches. Dana tended to rely on her feelings when choosing, while Yaron preferred a more analytical approach, using Excel spreadsheets to support his decisions with numerical data.

Her wish was for a celebratory gathering, whereas his preference was to remain seated at the computer. Whenever she showed interest in a potential plot of land, he would always interject: “Hold on a moment, the numbers don’t add up… I don’t really understand the deal… you’re moving too fast…” This would inevitably lead to frustration on her part, and she would exclaim, “This isn’t the kind of land we should be buying, so…”

Once they came to me for advice, I held up a mirror to their situation. I explained to her how crucial it was to let him take the reins in building the Excel document, and to trust his abilities. At the same time, he needed to allow her the freedom to explore as many apartments as possible, to talk to as many people as possible, and to truly immerse herself in the environment. Once they had this mutual understanding, they were able to divide and conquer, and ultimately achieved their goal of purchasing land within just a few weeks.

In order to achieve optimal results, it is important to hold your partner’s communication style in high regard. By showing respect towards their manner of communication, you can foster a better environment for collaboration and success.